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Max Midstream and CPA announce port expansion

Published by , Editorial Assistant
Tanks and Terminals,

Max Midstream and the Calhoun Port Authority (CPA) have announced that the expansion of the Calhoun port in Houston, Texas, will begin in 2021 with the recent passage of the 'Water Resources and Development Act' by Congress. The national legislation included language pursued by both Max and the CPA that authorises the deepening and widening of the port.

“This is another great step forward for Texas energy and for markets around the world seeking Texas crude,” said the CEO of Max Midstream, Todd Edwards. “Now that Congress has approved the deepening and widening of the Calhoun port, Max Midstream will expedite the process by financing the expansion directly. By early 2023 the deepening and widening will be complete and 20 million bbl/month will be shipped out of the port.”

In addition, Max Midstream has also announced that it has reached an agreement with Phillips 66 to connect the Gray Oak pipeline to the Calhoun port. This will allow Permian and Eagle Ford basin crudes to export via the port as well. 

In 2020, Max Midstream and the CPA reached an agreement on a public/private partnership, in which Max Midstream will invest US$360 million to finance the deepening and widening of the Port by 2023. In the interim, Max Midstream has secured its own lightering zone to perform reverse lightering to export crude onto larger ships. Max Midstream will initially load Panamax ships and will reverse lighter to larger ships in its lightering zone. Once the widening and deepening project is complete, Aframax and Suezmax ships will also be able to load at the port, making it a viable option for any exporter seeking a non-congested port connected to both the Eagle Ford and the Permian other than Houston or Corpus Christi.

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